The Nigerian government should reconsider its decision to impose taxes on companies operating in free trade zones (FTZs) as this may result in the country losing its private jet maintenance hub operated by ExecuJet Nigeria at Lagos, which currently attracts aircraft from across Africa for cost-effective maintenance due to tax exemptions.
This is the call from Sam Iwuajoku, the administrator of the Quits Aviation Services Free Trade Zone, which hosts ExecuJet Aviation Nigeria FZE at Lagos International Airport. He told the newspapers Business Day and This Day Live that the facility handles maintenance, repair, and overhaul (MRO) services, trains local staff with expatriate expertise, and supports more than 1,000 jobs.
He warned that the tax reform would threaten these jobs, hinder technology transfer, and result in higher maintenance costs for Nigerian-owned aircraft as owners would have to take their aircraft to maintenance hubs overseas.
The Nigeria Export Processing Zones Authority (NEPZA) currently offers tax exemptions and other benefits to free-zone enterprises, including reduced foreign exchange risks.
ch-aviation has reached out to ExecuJet Nigeria for comment.
According to company information, it is part of ExecuJet Aviation Group, with Quits Group being the Nigerian partner. It is set up as an MRO and fixed-base operator (FBO) at Lagos with a 22,835 square metre concrete apron and a 4,074 square metre hangar. It serves the needs of the business jet market in Nigeria and visiting aircraft. Line and scheduled maintenance services are provided for Bombardier Business Aircraft, Dassault Falcon Jet, Embraer, Hawker Beechcraft, and other aircraft. The company is approved by the Nigerian Civil Aviation Authority, the South African CAA, the Bermudan CAA, and the Cayman CAA. EASA certification is in progress.
